Chinese tech will face tough US restrictions regardless of any trade deal, economist says

Huawei and other Chinese tech companies will be subject to tough restrictions from the United States irrespective of any future trade deal, an economist told CNBC Tuesday. The two largest economies in the world have been at odds over their trade links for about 18 months. “Even with a phase one trade deal or even a complete trade deal, our conviction is that tougher restrictions from the U.S. on technology will continue,” Tao Wang, chief China economist at UBS, told CNBC’s Joumanna Bercetche. In


Huawei and other Chinese tech companies will be subject to tough restrictions from the United States irrespective of any future trade deal, an economist told CNBC Tuesday.
The two largest economies in the world have been at odds over their trade links for about 18 months.
“Even with a phase one trade deal or even a complete trade deal, our conviction is that tougher restrictions from the U.S. on technology will continue,” Tao Wang, chief China economist at UBS, told CNBC’s Joumanna Bercetche.
In
Chinese tech will face tough US restrictions regardless of any trade deal, economist says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-12  Authors: silvia amaro
Keywords: news, cnbc, companies, told, order, tough, trump, regardless, face, deal, wang, trade, restrictions, chinese, huawei, tech, ubs, technology, economist


Chinese tech will face tough US restrictions regardless of any trade deal, economist says

Huawei and other Chinese tech companies will be subject to tough restrictions from the United States irrespective of any future trade deal, an economist told CNBC Tuesday.

The two largest economies in the world have been at odds over their trade links for about 18 months. Their tit-for-tat tariff dispute escalated in May, when the U.S. took steps to ban Huawei from selling its technology in the U.S. market.

“Even with a phase one trade deal or even a complete trade deal, our conviction is that tougher restrictions from the U.S. on technology will continue,” Tao Wang, chief China economist at UBS, told CNBC’s Joumanna Bercetche.

Speaking at the UBS European Conference, Wang said that the U.S. decision to ban Huawei was a “catalyst to show that actually the dispute on the trade front has spread to other areas, like technology.”

In May, President Donald Trump signed an executive order declaring that the U.S. telecoms sector was experiencing a “national emergency.” “Foreign adversaries are increasingly creating and exploiting vulnerabilities in information and communications technology and services,” Trump said in the order.


Company: cnbc, Activity: cnbc, Date: 2019-11-12  Authors: silvia amaro
Keywords: news, cnbc, companies, told, order, tough, trump, regardless, face, deal, wang, trade, restrictions, chinese, huawei, tech, ubs, technology, economist


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How Beddr and other tech start-ups hope to help millions of Americans get a good sleep

CEO Michael Kisch is among a growing group of entrepreneurs making tools to improve people’s sleep. His company, Beddr, is known for its stamp-size sensor called the Sleep Tuner, which fits on the forehead and measures things like heart rate and oxygen saturation levels. CEO Michael Kisch launched Beddr in 2016. Michael Kisch, BeddrAn estimated 22 million Americans have sleep apnea, but about 80% are unaware they have it. Researchers are also finding out about a potential consequence of sleep tr


CEO Michael Kisch is among a growing group of entrepreneurs making tools to improve people’s sleep.
His company, Beddr, is known for its stamp-size sensor called the Sleep Tuner, which fits on the forehead and measures things like heart rate and oxygen saturation levels.
CEO Michael Kisch launched Beddr in 2016.
Michael Kisch, BeddrAn estimated 22 million Americans have sleep apnea, but about 80% are unaware they have it.
Researchers are also finding out about a potential consequence of sleep tr
How Beddr and other tech start-ups hope to help millions of Americans get a good sleep Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-12  Authors: christina farr
Keywords: news, cnbc, companies, michael, kisch, millions, sleep, help, making, dont, treatment, tech, hope, americans, startups, beddr, company, known, good


How Beddr and other tech start-ups hope to help millions of Americans get a good sleep

Getty | Boy_Anupong

Nearly half of Americans say they are impacted by poor-quality sleep, and many are on the hunt for solutions to help them get to sleep more quickly and stay asleep longer. CEO Michael Kisch is among a growing group of entrepreneurs making tools to improve people’s sleep. His company, Beddr, is known for its stamp-size sensor called the Sleep Tuner, which fits on the forehead and measures things like heart rate and oxygen saturation levels. His team also built an app that offers access to coaches, who can help people making lifestyle changes to improve their sleep quality, and provides a network of medical experts for those who need follow-up care. Kisch launched his Mountain View, California-based company in 2016 after experiencing his own sleep struggles. “It was the primary contributor to some very dark days where I struggled with my mental well-being, relationships and physical health,” he said. Now the company — which made the 2019 CNBC Upstart 100 list, revealed on Tuesday — is making its most ambitious move yet: to get regulatory approval to detect sleep apnea, which would make Beddr a much easier alternative for detecting this common condition than the current method, which requires sleeping in a lab while hooked up to wires.

CEO Michael Kisch launched Beddr in 2016. Sleep Tuner, the company’s stamp-size sensor created to improve sleep, fits on the forehead and measures things like heart rate and oxygen saturation levels. Michael Kisch, Beddr

An estimated 22 million Americans have sleep apnea, but about 80% are unaware they have it. The condition is associated with an increased risk of cardiovascular disease, obesity and diabetes, and those who aren’t getting treatment often feel fatigued during the day despite getting a full night’s sleep. “Most people don’t realize there are doctors out there who are specialized around sleep and that there are treatment options available,” the serial health tech entrepreneur said. “We’re looking to change that with a focus on accessibility and convenience.” So far the company has raised $5.6 million from Stanford StartX, Three Leaf Ventures, Delta Dental, IT Farm and angel investors and family offices, Kisch said.

A boom in sleep wellness tools

Most people don’t realize there are doctors out there who are specialized around sleep and that there are treatment options available. Michael Kisch founder and CEO, Beddr

Kisch said there aren’t any peer-reviewed studies that show whether the Beddr approach is effective in helping people sleep, although research shows that the methodology underlying the coaching — known as CBT-I — can work well for many patients with insomnia. But sleep medicine experts warn that wearables and apps aren’t a quick fix for everyone, claiming that the products are of mixed quality and many of them don’t help their users sleep better. In fact, some are having the opposite effect. “People spent billions on weight loss and increasingly sleep tech, but they don’t listen to the free advice,” said Seema Khosla, a pulmonologist in Fargo, North Dakota, who runs the tech committee of the American Academy of Sleep Medicine. “You don’t need a gadget to tell you to put your phone down and go to bed at the same time and wake up at the same time.” Researchers are also finding out about a potential consequence of sleep tracking, known as orthosomnia, which involves patients becoming obsessed with optimizing their sleep, which in turn impacts their sleep. In other words, if someone is anxious about their sleep, getting them to fixate on it is far from ideal.


Company: cnbc, Activity: cnbc, Date: 2019-11-12  Authors: christina farr
Keywords: news, cnbc, companies, michael, kisch, millions, sleep, help, making, dont, treatment, tech, hope, americans, startups, beddr, company, known, good


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Ahead of the 2020 election, this Israeli start-up is using military-grade tech to fight fake news

That includes identifying fake news spread by bots and fake users, and shielding brands from content that could be potentially damaging. The company said its company was trained using millions of pieces of content across 14 languages. This can happen when bots are sharing given content, Tytunovich said. If it’s just a matter of the content flagging a brand’s safety filters, Cheq blocks the placement and it ends there. If it is believed to be fake news or something more sinister, the company aler


That includes identifying fake news spread by bots and fake users, and shielding brands from content that could be potentially damaging.
The company said its company was trained using millions of pieces of content across 14 languages.
This can happen when bots are sharing given content, Tytunovich said.
If it’s just a matter of the content flagging a brand’s safety filters, Cheq blocks the placement and it ends there.
If it is believed to be fake news or something more sinister, the company aler
Ahead of the 2020 election, this Israeli start-up is using military-grade tech to fight fake news Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-12  Authors: megan graham
Keywords: news, cnbc, companies, israeli, election, using, 2020, militarygrade, information, content, startup, fight, fake, cheq, brands, tech, human, braun, company, technology, ahead, tytunovich


Ahead of the 2020 election, this Israeli start-up is using military-grade tech to fight fake news

Violka08 | iStock | Getty Images

Guy Tytunovich, co-founder and CEO of CHEQ CHEQ

“Of course, there are far more domains that disinform,” Global Disinformation Index co-founder Clare Melford said. “It’s a very rough number … a massive underestimate.” Tytunovich, along with co-founders Chairman Ehud Levy and Chief Technology Officer Asaf Butovsky, founded Cheq in July 2017 to protect advertisers from “everything that’s bad in the digital advertising ecosystem.” That includes identifying fake news spread by bots and fake users, and shielding brands from content that could be potentially damaging. Brands might elect to avoid the obvious red flags, like pornography, hate speech or graphic violence, but may also choose to steer clear of news articles that could conflict with their image. For instance, a burger brand might consider a news article about obesity as “unsafe” for its ads, says Cheq.

A brand watchdog

Cheq is based in Tel Aviv and has 60 employees, 25 of which are engineers with defense or cybersecurity backgrounds, the company said. Cheq today claims to be working with some of the world’s biggest advertisers and ad agencies but said it could only name Dentsu’s Cyber Communications, which Cheq is working with in Japan. The company announced its Series A round of funding of $5 million in June 2018. “I may be the only person in New York who has enjoyed the Trump effect,” Tytunovich said. “I’m of course saying it tongue-in-cheek and jokingly,” he quickly adds.

Cheq’s technology tries to digest a news article like a human brain would. For example, it examines aspects like whether it’s written at a high level. “Obviously, anything we can recognize as [user-generated content] is less reliable,” Tytunovich said. The company claims its technology can also discern if the content is posted on a social network versus a different site, and the status of a site’s reputation. It will also corroborate certain news against various sources to help validate any information. The company said its company was trained using millions of pieces of content across 14 languages. Cheq’s technology also examines how that fake news is proliferated. This can happen when bots are sharing given content, Tytunovich said. “When we are able to see that something has been distributed massively or retweeted or reposted by a user that is a bot, obviously it raises red flags,” he said. Cheq tries to identify this content and who’s distributing it anywhere it is, whether it’s on a platform like Facebook, Google or Twitter, or on another publisher. When the company’s technology has flagged a piece of content, it automatically prevents its clients from appearing as advertisers on that page. If it’s just a matter of the content flagging a brand’s safety filters, Cheq blocks the placement and it ends there. If it is believed to be fake news or something more sinister, the company alerts the publisher or platform. Tytunovich said if there seems to be something with a criminal aspect to it, like a fraudulent or bot attack on a certain publisher, the company will provide data and technological help to combat the issue, and in some cases the company will also talk to law enforcement.

Is automation enough?

There’s some hesitation in the advertising industry of using artificial intelligence alone in discerning the safety of a given page or site. GDI’s Melford said commercial companies operating in this space face a few difficulties. She said when companies claim to use AI to assess any domain, they’re likely not able to bring the same kind of context that a human brain can help with. For example, she said, if a site is covering an area that is in the midst of a coup but doesn’t cover the coup at all, the information could be determined to be “disinforming” even if it’s just leaving out information, not necessarily putting out fake information.

When we are able to see that something has been distributed massively or retweeted or reposted by a user that is a bot, obviously it raises red flags. Guy Tytunovich CEO of CHEQ

“You can actually disinform with no information at all,” she said. “If you’re not covering a coup, how is an algorithm going to know?” She added, “Any commercial entity is going to struggle to be totally free from conflicts of interest in this space.” Josh Braun, an associate professor of journalism at the University of Massachusetts who has studied the business of fake news, said other verification services and brand-safety vendors in the ad tech market typically use a mixture of human review and simpler algorithmic filters. Companies like Moat, DoubleVerify, IAS and TrustMetrics offer different takes on this, he said. But is it fair to charge brands for this kind of service when some would argue ad tech partners shouldn’t place ads on questionable content in the first place? “If we had a working ad tech ecosystem, then this kind of brand safety would be a baseline assurance and not a premium product,” Braun said. And if the platforms were pressured to take more responsibility for the content within their own walls, some of this would also be less possible for fraudsters, Braun said. At this point, Google’s business model involves minimizing effort in these areas while maximizing profit margins, he said. “If they were forced into a more responsible business model through regulation, they could afford to do a lot more,” Braun said. That might lead them to be less profitable and less appealing to shareholders, but they could hire more human moderators and “act more responsibly,” he said. Cheq said it uses human-quality testing to make sure its AI is accurately making decisions and identifying concepts. The company gives clients full lists of blocked URLs by the algorithms so they can verify how it’s performing.

Looking into 2020 and beyond


Company: cnbc, Activity: cnbc, Date: 2019-11-12  Authors: megan graham
Keywords: news, cnbc, companies, israeli, election, using, 2020, militarygrade, information, content, startup, fight, fake, cheq, brands, tech, human, braun, company, technology, ahead, tytunovich


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A new $400 million tech fund wants to help European start-ups compete with Silicon Valley and China

Venture capital firm Balderton Capital is launching a new $400 million fund, which it says will be used to invest in early-stage European tech start-ups. The company, which is based in London, added that the new fund would make roughly 12 investments per year. Europe’s tech sector is seen as lagging behind its U.S. and Chinese counterparts, especially when it comes to venture capital, or VC, inflows and valuations. A prominent IPO in 2018 was that of Adyen’s, the Dutch payments firm, which has s


Venture capital firm Balderton Capital is launching a new $400 million fund, which it says will be used to invest in early-stage European tech start-ups.
The company, which is based in London, added that the new fund would make roughly 12 investments per year.
Europe’s tech sector is seen as lagging behind its U.S. and Chinese counterparts, especially when it comes to venture capital, or VC, inflows and valuations.
A prominent IPO in 2018 was that of Adyen’s, the Dutch payments firm, which has s
A new $400 million tech fund wants to help European start-ups compete with Silicon Valley and China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-11  Authors: ryan browne
Keywords: news, cnbc, companies, wants, compete, help, million, seen, capital, startups, firm, balderton, europe, silicon, tech, fund, venture, valley, european


A new $400 million tech fund wants to help European start-ups compete with Silicon Valley and China

Venture capital firm Balderton Capital is launching a new $400 million fund, which it says will be used to invest in early-stage European tech start-ups.

Balderton said Tuesday that the fund is targeted at start-ups raising funds at the Series A stage — in other words, businesses that are looking to raise their first significant round of funding. The company, which is based in London, added that the new fund would make roughly 12 investments per year.

Europe’s tech sector is seen as lagging behind its U.S. and Chinese counterparts, especially when it comes to venture capital, or VC, inflows and valuations. There have been some signs that the industry on the continent may be gathering steam though.

Last year, a report by another VC firm, Atomico, said that Europe was home to twice as many tech initial public offerings as the U.S., while newly-listed European firms were seen to be outperforming their American rivals. A prominent IPO in 2018 was that of Adyen’s, the Dutch payments firm, which has seen its share price rise over 50% since it debuted.

Lars Fjeldsoe-Nielsen, a general partner at Balderton, told CNBC he doesn’t think Europe is far from creating a tech firm that can rival Silicon Valley giants like Facebook and Google or online platforms out of China like Alibaba and Tencent.


Company: cnbc, Activity: cnbc, Date: 2019-11-11  Authors: ryan browne
Keywords: news, cnbc, companies, wants, compete, help, million, seen, capital, startups, firm, balderton, europe, silicon, tech, fund, venture, valley, european


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Airbnb CEO: These are 2 things that caused WeWork’s fall

Speaking at The New York Times DealBook conference in New York City on Wednesday, Chesky said he believes two main things contributed to WeWork’s fall. According to Chesky, the first lesson here is that not all tech companies are the same. “We now realize that is not that they aren’t a tech company, it is that tech companies live on a continuum,” he said. And I think that’s the first lesson of WeWork,” Chesky said. (Additionally, skeptics of WeWork have defined it more as a real estate company t


Speaking at The New York Times DealBook conference in New York City on Wednesday, Chesky said he believes two main things contributed to WeWork’s fall.
According to Chesky, the first lesson here is that not all tech companies are the same.
“We now realize that is not that they aren’t a tech company, it is that tech companies live on a continuum,” he said.
And I think that’s the first lesson of WeWork,” Chesky said.
(Additionally, skeptics of WeWork have defined it more as a real estate company t
Airbnb CEO: These are 2 things that caused WeWork’s fall Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-11  Authors: jade scipioni
Keywords: news, cnbc, companies, billion, caused, fall, need, weworks, things, airbnb, companies, chesky, ipo, business, wework, ceo, tech, company


Airbnb CEO: These are 2 things that caused WeWork's fall

Airbnb co-founder and CEO Brian Chesky says he has made it clear to his employees and investors that he plans to take the company public in 2020, despite the varying levels of success with tech IPOs this year. But Chesky says he won’t make the same mistakes that co-working company WeWork and its co-founder Adam Neumann made with the company’s ill-fated IPO. After WeWork withdrew its IPO filing in September, SoftBank agreed to take a majority stake in the company, resulting in Neumann’s exit, layoffs and the unicorn start-up once valued at $47 billion, is now worth less than $5 billion, reports Markets Insider. WeWork also said Friday there will be changes to the business, including the company divesting “non-core businesses” (including its investment in The Wing) and reducing its head count. Speaking at The New York Times DealBook conference in New York City on Wednesday, Chesky said he believes two main things contributed to WeWork’s fall.

Not all tech companies are created equal

Shortly after WeWork filed its IPO in August, the company faced intense scrutiny about its finances and its inflated valuation of $47 billion. For instance, The Financial Times reported July that despite WeWork’s high valuation and growth, the 9-year-old start-up was losing cash fast — roughly $219,000 an hour to be exact. What’s more, in 2018, the company disclosed that its losses and revenues both doubled from the year before to $1.9 billion and $1.8 billion, respectively. According to FT, while WeWork projected $3 billion in revenue in March, it lost $700 million in the first quarter of 2019. According to Chesky, the first lesson here is that not all tech companies are the same. Some are good businesses, and some are not. He says historically, investors would value companies at a one or a zero — meaning its either a tech company or its not a tech company “I think that people used to believe that every company was a tech company,” Chesky said at the DealBook conference. “We now realize that is not that they aren’t a tech company, it is that tech companies live on a continuum,” he said. “The best way to understand the continuum is your gross margins or what is your gross profit. Some [companies] like Microsoft and these really big tech firms have really high margins and other companies [have] really low margins. And I think that’s the first lesson of WeWork,” Chesky said. In this case, WeWork — whose main business model is to lease or buy office space and transform it into smaller offices to rent to small business owners or start-ups — is a low margin business, meaning its service sells for very close to the price that it costs the company to get the real estate it leases out. (Additionally, skeptics of WeWork have defined it more as a real estate company than a tech company. This despite WeWork’s attempt to position itself as a tech company: As far back as 2014, Neumann has been on the record saying that the company “happens to need buildings just like Uber happens to need cars, just like Airbnb happens to need apartments.” And in its S-1 IPO paperwork WeWork used the word “tech” 123 times, according to CBInsights.)

Founders need to be thoughtful about their actions early on


Company: cnbc, Activity: cnbc, Date: 2019-11-11  Authors: jade scipioni
Keywords: news, cnbc, companies, billion, caused, fall, need, weworks, things, airbnb, companies, chesky, ipo, business, wework, ceo, tech, company


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Big Tech must protect user data against spying, security expert says

Big Tech must protect user data against spying, security expert saysAlex Stamos, former chief security officer at Facebook who is now an adjunct professor at Stanford University, joins “Squawk Box” to discuss. Last week, federal prosecutors charged two former Twitter employees with spying on users on behalf of Saudi Arabia’s government.


Big Tech must protect user data against spying, security expert saysAlex Stamos, former chief security officer at Facebook who is now an adjunct professor at Stanford University, joins “Squawk Box” to discuss.
Last week, federal prosecutors charged two former Twitter employees with spying on users on behalf of Saudi Arabia’s government.
Big Tech must protect user data against spying, security expert says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-11
Keywords: news, cnbc, companies, security, week, expert, users, university, twitter, protect, spying, stamos, data, tech, big, stanford, user


Big Tech must protect user data against spying, security expert says

Big Tech must protect user data against spying, security expert says

Alex Stamos, former chief security officer at Facebook who is now an adjunct professor at Stanford University, joins “Squawk Box” to discuss. Last week, federal prosecutors charged two former Twitter employees with spying on users on behalf of Saudi Arabia’s government.


Company: cnbc, Activity: cnbc, Date: 2019-11-11
Keywords: news, cnbc, companies, security, week, expert, users, university, twitter, protect, spying, stamos, data, tech, big, stanford, user


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Need a loan? There’s a tech company for that.

Other major tech companies have also come up with similar consumer or small-business offerings. It’s the kind of trend that has some investors seeing a future in which tech companies without a financial services business are the outliers. Some major tech companies are already experiencing the pitfalls of consumer lending. Bringing financial services to underserved populations has been a rallying cry for tech companies seeking to enter the world of banking. Nof warned that it’s easy for lending s


Other major tech companies have also come up with similar consumer or small-business offerings.
It’s the kind of trend that has some investors seeing a future in which tech companies without a financial services business are the outliers.
Some major tech companies are already experiencing the pitfalls of consumer lending.
Bringing financial services to underserved populations has been a rallying cry for tech companies seeking to enter the world of banking.
Nof warned that it’s easy for lending s
Need a loan? There’s a tech company for that. Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-11  Authors: jason abbruzzese
Keywords: news, cnbc, companies, services, theres, consumer, need, companies, financial, loans, debt, loan, credit, tech, lending, startups, company


Need a loan? There's a tech company for that.

A monitor displays a “Zuck Buck” as Mark Zuckerberg, chief executive officer and founder of Facebook Inc., testifies during a House Financial Services Committee hearing in Washington, D.C., U.S., on Wednesday, Oct. 23, 2019.

Technology companies have a new product to sell: debt.

Once something Silicon Valley avoided, financial services such as consumer loans have crept in to the offerings of just about every tech company, a transition that highlights the increasing pressure to find new sources of revenue.

Many of those services come with claims that innovation, along with consumer choice, will help people who haven’t had access to traditional banking. But some Silicon Valley veterans are also warning that lenders to consumers and small businesses are already plentiful and that the practice of lending carries different kinds of risks than tech companies are used to.

And tech critics aren’t keen on the idea either, pointing to a history of using automated systems that end up discriminating against already marginalized groups.

Uber became the most recent tech entrant in October when it announced a new division called Uber Money that will offer financial products, including a digital wallet containing debit and credit cards. The ride-hailing company has struggled to turn a profit.

Other major tech companies have also come up with similar consumer or small-business offerings. Apple has teamed up with Goldman Sachs for a credit card. Payment companies Stripe and Paypal offer small-business loans. Facebook has teased an entry into finance through its embattled Libra digital currency project. Amazon has offered short-term loans to businesses since 2011 and added Bank of America as a partner in 2018. Even China’s tech giants are getting in on the act.

Those companies are also competing with a variety of startups solely focused on financial services technology — fintech, in Silicon Valley parlance — that offer a variety of tools and services that are underpinned by lending.

It’s the kind of trend that has some investors seeing a future in which tech companies without a financial services business are the outliers. Michael Gilroy, a partner at the investment firm Coatue Management, published a blog post in August declaring that “all big brands will become fintechs.”

“You need to have a business that’s already working,” Gilroy told NBC News. “Then you can get into lending.”

But he also offered a warning: The downside of lending is as big as its upside.

“Credit can be a very bad thing depending on how it’s packaged and how you give it, but credit can also be an incredible driver of the economy,” Gilroy said.

Some major tech companies are already experiencing the pitfalls of consumer lending. A New York regulator is investigating possible sex discrimination in the way Goldman Sachs set credit limits for the Apple Card. Uber’s credit effort has attracted criticism from labor activists and politicians who say the company already has a predatory relationship with its drivers.

The rise of peer-to-peer lending — in which tech platforms connect individuals in need of loans with people interested in lending money — in the mid-2000s led to the first “tech-enabled” consumer debt companies, with some, like Lending Club, going public at multibillion-dollar values. But those companies remained a very small percentage of the larger U.S. consumer and small-business debt industries, which lend hundreds of billions of dollars each year.

That began to change after the U.S. financial crisis, which led banks to pull back from consumer and small-business lending.

“The banks, post-crisis, never really got back into expanding their consumer lending or small-business lending, so there’s this whole market that’s underserved,” said Logan Allin, general partner at Fin Venture Capital, which invests in financial technology startups. “And there’s a portion of that market that definitely deserves credit.”

Bringing financial services to underserved populations has been a rallying cry for tech companies seeking to enter the world of banking. The race to bring banking to poor people around the world has been called a “$100 trillion opportunity.”

The size of that market, combined with the importance of payments as an everyday consumer service, make lending a tempting proposition for big tech companies even if they’re not bringing anything new to the industry.

“It’s not a shiny industry in the sense it’s not feature-rich,” said Gene Munster, a veteran tech analyst and managing director of the venture capital firm Loup Ventures. “The concept of payments being central to us is timeless, and I think these companies recognize you need to build products that capitalize on just the usage of them.”

Startups are, however, looking to bring new angles to lending. Venture capital flooded into fintech companies around the world in 2018 with $36.6 billion invested across more than 2,300 rounds of fundraising — more than the previous two years combined, according to Innovate Finance, a fintech membership association in the United Kingdom.

But the opportunities for fintechs may be limited, particularly in the United States. Americans already have high personal debt levels, spurred in part by fintech companies that now account for a greater percentage of the overall personal loan market than banks, according to data from TransUnion.

And Allin noted that some tech companies are looking to “alternative metrics” such as tracking smartphone usage as an indicator of creditworthiness, rather than relying on traditional data such as credit scores and income.

The technology behind these loan programs also tends to be secretive, employing algorithms and artificial intelligence to determine who should and shouldn’t receive loans.

“It’s a bit black-box,” Allin said.

Fintech lending has added to broader concerns about “shadow banking” — lending that happens outside traditional financial institutions such as peer-to-peer lending and through hedge funds — that now accounts for almost $15 trillion in assets in the U.S. alone. A 2017 survey by the Federal Deposit Insurance Corp. found about 25 million people in the U.S. were unbanked.

Fintechs also face changing consumer appetites for loans. Jordan Nof, managing partner of the startup investment firm Tusk Venture Partners, who also oversaw venture capital investments at Blackstone, said young professionals who might make sense for fintech companies aren’t looking for loans.

“Consumers who are in their 20s and 30s right now have demonstrated time and time again an aversion to taking on any additional debt,” Nof said. “They want to pay off their student loans as quickly as possible, so creating a new debt product for people who don’t want debt, that’s a tough sell.”

Nof said that while he sees plenty of lending-focused startups that offer legitimate value to consumers, a strong U.S. economy combined with intensifying competition among startups can create problems.

“Right now, we’re just seeing people solving problems that don’t exist,” Nof said.

Nof warned that it’s easy for lending startups to end up resembling payday loan companies — something there’s plenty of. CB Insights, a company that tracks startups, found more than 30 companies dedicated to “unbundling the paycheck” in a variety of ways including lending and loan servicing.

And while startups often thrive by forcing stodgy markets to change, disruption is a far riskier proposition when it comes to debt.

“I think that whenever it comes down to the stakes, it’s kind of similar to health care,” Nof said. “The stakes are just really high. You really can’t get things wrong on that side.”


Company: cnbc, Activity: cnbc, Date: 2019-11-11  Authors: jason abbruzzese
Keywords: news, cnbc, companies, services, theres, consumer, need, companies, financial, loans, debt, loan, credit, tech, lending, startups, company


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Big Tech closes out a big week with Microsoft, Apple and Alphabet all closing at records

The broad stock market rally that’s lifted U.S. indexes to record highs has been very good to Big Tech. All three tech giants reported better-than-expected revenue in their latest earnings report last month, and Microsoft and Apple also beat estimates on profit. On Friday, Microsoft gained 1.2%, Apple inched up 0.3%, and Alphabet rose 0.2%. But the company had the best week among the Big Tech crew, with the stock rising 2.9%. The other two mega-cap tech companies are still off their record highs


The broad stock market rally that’s lifted U.S. indexes to record highs has been very good to Big Tech.
All three tech giants reported better-than-expected revenue in their latest earnings report last month, and Microsoft and Apple also beat estimates on profit.
On Friday, Microsoft gained 1.2%, Apple inched up 0.3%, and Alphabet rose 0.2%.
But the company had the best week among the Big Tech crew, with the stock rising 2.9%.
The other two mega-cap tech companies are still off their record highs
Big Tech closes out a big week with Microsoft, Apple and Alphabet all closing at records Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: william feuer ari levy, william feuer, ari levy
Keywords: news, cnbc, companies, tech, records, big, apple, week, market, trade, stock, closes, alphabet, closing, highs, record, microsoft


Big Tech closes out a big week with Microsoft, Apple and Alphabet all closing at records

The broad stock market rally that’s lifted U.S. indexes to record highs has been very good to Big Tech.

Microsoft, Apple and Google parent Alphabet all closed at all-time highs on Friday, as investors continue to brush aside fears of a trade war and economic slowdown, focusing instead on the companies’ financials and dominance in their respective markets.

All three tech giants reported better-than-expected revenue in their latest earnings report last month, and Microsoft and Apple also beat estimates on profit.

On Friday, Microsoft gained 1.2%, Apple inched up 0.3%, and Alphabet rose 0.2%.

Apple has climbed in seven of the past eight trading days and reached a market cap of $1.16 trillion, making the iPhone manufacturer the world’s most valuable publicly-traded company, just ahead of Microsoft at $1.11 trillion. Apple’s stock is up 65% in 2019 and Microsoft has gained 44%, both trouncing the S&P 500, which has climbed 23%.

Alphabet has performed only slightly better than S&P 500 for the year, gaining 25% in 2019. But the company had the best week among the Big Tech crew, with the stock rising 2.9%. It’s notched gains in five of the past six trading days, making the company’s close on Thursday its highest since April.

The three companies combined now account for about 12% of the value of the S&P 500.

The stock market has been riding a wave of optimism regarding trade negotiations with China that’s propelled the Nasdaq Composite to six straight weekly gains and the S&P 500 to five consecutive positive weeks.

The other two mega-cap tech companies are still off their record highs reached last year. Amazon has dropped 12% from its highest close in September 2018, and Facebook is 12% off its record close from two months prior.

WATCH: How Apple CEO Tim Cook won over Trump amid a trade war


Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: william feuer ari levy, william feuer, ari levy
Keywords: news, cnbc, companies, tech, records, big, apple, week, market, trade, stock, closes, alphabet, closing, highs, record, microsoft


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How Apple CEO Tim Cook charmed President Donald Trump

The trade war between the United States and China has most big tech companies really worried about whether tariffs could cut into their bottom linesBut one company was able to thread the needle between a volatile American president and the world’s biggest consumer market. More than any other tech leader, Apple CEO Tim Cook has spent a lot of time charming the Trump administration. And it seems to be paying off. Apple did not return requests for comment. Watch the video to learn how Apple’s CEO n


The trade war between the United States and China has most big tech companies really worried about whether tariffs could cut into their bottom linesBut one company was able to thread the needle between a volatile American president and the world’s biggest consumer market.
More than any other tech leader, Apple CEO Tim Cook has spent a lot of time charming the Trump administration.
And it seems to be paying off.
Apple did not return requests for comment.
Watch the video to learn how Apple’s CEO n
How Apple CEO Tim Cook charmed President Donald Trump Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: kif leswing andrea miller, kif leswing, andrea miller
Keywords: news, cnbc, companies, war, tech, worlds, volatile, apple, president, tim, video, donald, charmed, trade, ceo, worried, uschina, trump, cook


How Apple CEO Tim Cook charmed President Donald Trump

The trade war between the United States and China has most big tech companies really worried about whether tariffs could cut into their bottom lines

But one company was able to thread the needle between a volatile American president and the world’s biggest consumer market.

More than any other tech leader, Apple CEO Tim Cook has spent a lot of time charming the Trump administration.

And it seems to be paying off.

Apple did not return requests for comment.

Watch the video to learn how Apple’s CEO navigated the US-China trade war without ending up on the bad side of a mercurial U.S. president.


Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: kif leswing andrea miller, kif leswing, andrea miller
Keywords: news, cnbc, companies, war, tech, worlds, volatile, apple, president, tim, video, donald, charmed, trade, ceo, worried, uschina, trump, cook


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Investors want tech start-ups to prove they’ll be profitable after WeWork’s failed IPO

LISBON, Portugal — For tech start-ups trying to secure funding and go public, being in the black is the new black. At the Web Summit tech conference in Lisbon, Portugal this week, more than 2,000 start-ups vied for the attention, and pocketbooks, of venture capitalists, big tech companies and investment firms. Investors have shifted their attention toward profits following a string of high-profile IPOs from loss-making companies like Uber, Lyft and Peloton. Vision Fund blame gameSome investors b


LISBON, Portugal — For tech start-ups trying to secure funding and go public, being in the black is the new black.
At the Web Summit tech conference in Lisbon, Portugal this week, more than 2,000 start-ups vied for the attention, and pocketbooks, of venture capitalists, big tech companies and investment firms.
Investors have shifted their attention toward profits following a string of high-profile IPOs from loss-making companies like Uber, Lyft and Peloton.
Vision Fund blame gameSome investors b
Investors want tech start-ups to prove they’ll be profitable after WeWork’s failed IPO Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: elizabeth schulze
Keywords: news, cnbc, companies, ipo, profitability, companies, theyll, startups, capital, prove, week, venture, youre, web, profitable, fund, investors, weworks, failed, tech


Investors want tech start-ups to prove they'll be profitable after WeWork's failed IPO

LISBON, Portugal — For tech start-ups trying to secure funding and go public, being in the black is the new black. At the Web Summit tech conference in Lisbon, Portugal this week, more than 2,000 start-ups vied for the attention, and pocketbooks, of venture capitalists, big tech companies and investment firms. Potential investors responded with a common message: show us how you’re going to make money. “The narrative on the distance to profitability and the path to profitability becomes a bigger part of the story versus growth at all costs, and you’re seeing that return,” said Ravi Viswanathan, founder and managing partner of venture capital firm NewView Capital, in a panel Thursday titled “Is Silicon Valley Pivoting to Profits?” Investors have shifted their attention toward profits following a string of high-profile IPOs from loss-making companies like Uber, Lyft and Peloton. WeWork was forced to scrap its IPO as investors soured on the company’s massive losses, while Uber shares tumbled this week after the company reported a $1.1 billion net loss in its third-quarter earnings report this week.

“The narrative on the distance to profitability and the path to profitability becomes a bigger part of the story Ravi Viswanathan NewView Capital Founder

“A red flag is when your losses are growing quicker than your top line,” said Tim Levene, partner and CEO of U.K. publicly-listed fintech venture capital firm Augmentum. Entrepreneurs and fund managers at the conference in Lisbon told CNBC the debate between growth and profits has escalated in recent months as the financials of tech companies that soared to sky-high valuations in private markets were more closely scrutinized by public investors. “The industry…it’s reached another crescendo in terms of valuation,” Blackstone CEO Stephen Schwarzman told CNBC’s Karen Tso in an interview at Web Summit earlier this week, pointing to “artificial profit” that was built up as tech companies stayed private for longer than in the past.

Vision Fund blame game

Some investors blame SoftBank’s $100 billion Vision Fund for distorting valuations in private markets by injecting unprecedented amounts of capital into unprofitable tech start-ups. SoftBank reported its first quarterly loss in 14 years this week because of writedowns from investments into companies like WeWork and Uber. “My investment judgment was poor in many ways and I am reflecting deeply on that,” SoftBank CEO Masayoshi Son said in a news conference Wednesday. Despite these recent examples, entrepreneurs and investors at Web Summit argued a viable business model has always been key to securing funding. “I think it’s always been the case where the business model with long-term sustainability ultimately wins,” said Sunil Chandra, CEO of European fintech unicorn OakNorth, which received a $390 million investment from the Vision Fund earlier this year. Chandra, who defended the Vision Fund as “absolutely wonderful investors,” said the balance between profits and growth has always been a “difficult trade-off” for entrepreneurs, founders and investors.

Path to profitability

A common refrain at Web Summit was that the path to profitability, meaning the plan showing how revenues will ultimately exceed costs, is more important than proving the company is making money right away. “I have no problem with companies investing for future growth and profitability down the road but you have to make sure you’re operating in a sound model which can become profitable,” said Taavet Hinrikus, founder and chairman of fintech unicorn TransferWise, which turned a £10.3 million ($13.2 million) net profit in its most recent fiscal year. Rytis Vitkauskas, a partner at Lightspeed Venture Partners, said in a panel Thursday some of the most successful tech start-ups have taken years to be profitable. “Not all companies are created equal,” he said. “So long as you’re growing very fast and you’re spending very fast, so long as that duality is sensible, some of the best companies get created that way.”


Company: cnbc, Activity: cnbc, Date: 2019-11-08  Authors: elizabeth schulze
Keywords: news, cnbc, companies, ipo, profitability, companies, theyll, startups, capital, prove, week, venture, youre, web, profitable, fund, investors, weworks, failed, tech


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